See also
27.07.2026 05:40 AM
The GBP/USD pair also failed to show growth on Friday, but there are far fewer questions about the British currency in recent weeks compared to the European currency. The British pound demonstrated a solid three-week rise, which, in our view, was entirely justified given the overall fundamental and geopolitical backdrop. A correction then began, lasting a week. This too makes sense. On Monday night, the price broke through the descending trend line, suggesting that the correction may be over. The British pound is starting a new upward trend, which is part of the upward movement cycle on the weekly (or daily) chart that began after testing the lower boundary of the sideways channel that has been relevant for a year. Thus, from a technical standpoint, the pound is moving almost perfectly. On Friday, the business activity indexes in the services and manufacturing sectors of the UK also supported the pound, but the market paid little attention to them. In the new week, the British currency may find market support from geopolitical factors.
On the 5-minute timeframe, several trading signals were formed on Friday. The first signal turned out to be false, while the other two mirrored each other. Thus, novice traders could open two trade positions, each of which was not ideal due to weak movement. However, the pound may continue to rise this week.
On the hourly timeframe, the GBP/USD pair may begin a new upward trend. After three weeks of growth, a correction was necessary, but it may already be complete. Technically, any increase in the British currency in the coming days and weeks will be entirely justified.
On Monday, novice traders may open short positions if the price bounces off the area of 1.3380-1.3386 or consolidates below the area of 1.3319-1.3331. Long positions can be maintained after the buy signals formed on Friday, targeting 1.3380-1.3386.
On the 5-minute timeframe, levels to trade currently include 1.3096-1.3107, 1.3175-1.3180, 1.3259-1.3267, 1.3319-1.3331, 1.3380-1.3386, 1.3456-1.3476, 1.3587-1.3598, 1.3631-1.3641, and 1.3695. On Monday, no interesting events or publications are scheduled in the UK, while the US will release a relatively important report on durable goods orders. It is also notable that the dollar weakened during the Asian session due to geopolitical factors, as the US and Iran may return to the negotiating table later this week.
Price levels (areas) of support and resistance are targets when opening long or short positions or sources of signals.
Red lines indicate channels or trend lines that display the current trend and indicate the preferred direction for trading.
The MACD indicator (14,22,3) – histogram and signal line – is a supplementary indicator that can also be used as a source of signals.
Important speeches and reports (contained in the news calendar) can significantly impact the movement of the currency pair. Therefore, during their release, trading should be conducted with maximum caution, or one should exit the market to avoid sharp reversals against preceding movements.
Beginners trading in the forex market should remember that not every trade can be profitable. Developing a clear strategy and practicing money management are key to long-term success in trading.
